According to reports, the Neiman Marcus Group is preparing to seek bankruptcy protection. This would make Neiman Marcus the first major U.S. department store to fall from the coronavirus outbreak.
The pandemic forced it to temporarily shut all 43 of its Neiman Marcus locations and about two dozen Last Call stores. They also shutdown the famed two Bergdorf Goodman stores in New York.
While in the final stages of negotiating a loan for hundreds of millions of dollars, they had to furlough many of their 14,000 employees.
Other department stores like Macy’s Inc and Nordstrom had to close some stores. They have also been rushing to secure new financing.
The first Neiman Marcus store opened in Dallas, Texas, in 1907.
The company expanded across the United States and acquired New York City’s Bergdorf Goodman in 1972. The store became a status symbol for wealthy customers seeking expensive handbags and clothing.
Brick-and-mortar department stores have struggled recently to compete with discount retail chains and a consumer shift to online shopping.
The coronavirus outbreak has pushed the company to its limit. Although some workers are back to fulfill online orders, this does not make up for lost sales at the counter.
